Bidenomics Is Making China Angry. That’s OK. Biden has quietly taken a very tough line on trade, especially with China. China just filed a complaint with the WTO about the Inflation Reduction Act. For China, of all countries, to complain about targeted subsidies is an act of colossal chutzpah.
by mafco
2 comments
Good Ole American free trade.
STOP BUILDING CHEAP SOLAR PANELS. STOP BUILDING CHEAP CARS.
Previous efforts to reduce carbon emissions, both in Europe and the US, lacked any sort of industrial policy to create and grow the industries needed to supply all of the renewable energy technology, batteries and electric vehicles. That resulted in a “race to the bottom” where all the investment went to the lowest bidder – China, which had been massively subsidizing its domestic industries.
The Inflation Reduction Act took a huge step in correcting that problem for the US with its ‘made in America’ theme. It’s already been a huge success in creating a flurry of new private investment in factories for solar panels, batteries, electric vehicles and other critical technology. Europe is also following suit with its own version, after seeing its once world-leading solar panel industry decimated by China’s dumping of cheap panels on the world market.
It should also be noted that these very industrial policies will also go a long way to addressing income inequality in the US by creating millions of new good paying factory jobs.
The Biden administration has nothing to apologize to China over. Protecting US interests and its workers is what any good leader should do. Oh, on that note, Trump and the MAGA Republicans want to repeal the IRA, even though it’s creating thousands of jobs, mostly in Republican states.